@ArtistRights Institute Newsletter 01/05/26: Grok Can’t Control Itself, CRB V Starts, Data Center Rebellion, Sarah Wynn-Williams Senate Testimony, Copyright Review

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Phonorecords V Commencement Notice: Government setting song mechanical royalty rates

The Copyright Royalty Judges announce the commencement of a proceeding to determine reasonable rates and terms for making and distributing phonorecords for the period beginning January 1, 2028, and ending December 31, 2032. Parties wishing to participate in the rate determination proceeding must file their Petition to Participate and the accompanying $150 filing fee no later than 11:59 p.m. eastern time on January 30, 2026. Deets here.

US Mechanical Rate Increase

Songwriters Will Get Paid More for Streaming Royalties Starting Today (Erinn Callahan/AmericanSongwriter)

CRB Sets 2026 Mechanical Rate at 13.1¢ (Chris Castle/MusicTechPolicy)

Spotify’s Hack by Anna’s Archive

No news. Biggest music hack in history still stolen.

MLC Redesignation

The MMA’s Unconstitutional Unclaimed Property Preemption: How Congress Handed Protections to Privatize Escheatment (Chris Castle/MusicTechPolicy)

Under the Radar: Data Center Grass Roots Rebellion

Data Center Rebellion (Chris Castle/MusicTechSolutions)

The Data Center Rebellion is Here and It’s Reshaping the Political Landscape (Washington Post)

Residents protest high-voltage power lines that could skirt Dinosaur Valley State Park (ALEJANDRA MARTINEZ AND PAUL COBLER/Texas Tribune)

US Communities Halt $64B Data Center Expansions Amid Backlash (Lucas Greene/WebProNews)

Big Tech’s fast-expanding plans for data centers are running into stiff community opposition (Marc Levy/Associated Press)

Data center ‘gold rush’ pits local officials’ hunt for new revenue against residents’ concerns (Alander Rocha/Georgia Record)

AI Policy

Meet the New AI Boss, Worse Than the Old Internet Boss (Chris Castle/MusicTechPolicy)

Deloitte’s AI Nightmare: Top Global Firm Caught Using AI-Fabricated Sources to Support its Policy Recommendations (Hugh Stephens/Hugh Stephens Blog)

Grok Can’t Stop AI Exploitation of Women

Facebook/Meta Whistleblower Testifies at US Senate

Copyright Case 2025 Review

Year in Review: The U.S. Copyright Office (George Thuronyi/Library of Congress)

Copyright Cases: 2025 Year in Review (Rachel Kim/Copyright Alliance)

AI copyright battles enter pivotal year as US courts weigh fair use (Blake Brittain/Reuters)

@CadeMetz @ceciliakang @sheeraf @stuartathompson @nicogrant: How Tech Giants Cut Corners to Harvest Data for A.I.


[This is a must-read, deeply researched, long form article about how Big Tech–mostly OpenAI, Google and Microsoft–are abrogating consumers trust and their promises to creators in a mad, greedy, frothing rush to some unknown payoff with AI. The Dot Bomb boom is dwarfed by the AI gold rush, but this article is a road map to just how bad it really is and how debased these people really are. Thanks to the destruction of the newsroom, only a handful of news outlets can deliver work of this quality, but thankfully the New York Times is still standing. How long is another story.]

OpenAI, Google and Meta ignored corporate policies, altered their own rules and discussed skirting copyright law as they sought online information to train their newest artificial intelligence systems….

OpenAI researchers created a speech recognition tool called Whisper. It could transcribe the audio from YouTube videos, yielding new conversational text that would make an A.I. system smarter.

Some OpenAI employees discussed how such a move might go against YouTube’s rules, three people with knowledge of the conversations said. YouTube, which is owned by Google, prohibits use of its videos for applications that are “independent” of the video platform.

Ultimately, an OpenAI team transcribed more than one million hours of YouTube videos, the people said….

Like OpenAI, Google transcribed YouTube videos to harvest text for its A.I. models, five people with knowledge of the company’s practices said. That potentially violated the copyrights to the videos, which belong to their creators.

Last year, Google also broadened its terms of service. One motivation for the change, according to members of the company’s privacy team and an internal message viewed by The Times, was to allow Google to be able to tap publicly available Google Docs, restaurant reviews on Google Maps and other online material for more of its A.I. products.

The companies’ actions illustrate how online information — news stories, fictional works, message board posts, Wikipedia articles, computer programs, photos, podcasts and movie clips — has increasingly become the lifeblood of the booming A.I. industry. 

Read the post on New York Times.